Core Viewpoint - The CRO (Contract Research Organization) sector is experiencing a significant upward trend, driven by the strong performance forecast of WuXi AppTec, which is expected to see substantial revenue and profit growth in the first half of 2025 [1][3]. Financial Performance - WuXi AppTec anticipates revenue of approximately RMB 20.8 billion for the first half of 2025, representing a year-on-year increase of about 20.6% [3]. - The company expects a net profit attributable to shareholders of around RMB 8.56 billion, reflecting a year-on-year growth of approximately 101.9%, which includes investment income from the sale of equity in an associate [3]. - The adjusted Non-IFRS net profit is projected to be about RMB 6.31 billion, up 44.4% year-on-year, while the net profit excluding non-recurring items is expected to be around RMB 5.58 billion, a 26.5% increase [3]. Business Segments - The chemical business remains the primary revenue source for WuXi AppTec, accounting for over 70% of total revenue in recent years [4]. - The company has successfully supported the approval of multiple new drugs by the FDA and other regulatory bodies, indicating strong performance in its chemical business [4]. - The GLP-1 (glucagon-like peptide-1) drug development area is highlighted as a significant growth opportunity, with the number of clinical candidates increasing substantially [5]. Industry Trends - The Chinese pharmaceutical industry is transitioning from generic drug production to innovative drug development, which is driving demand for CRO services [2][6]. - The total licensing-out transaction amount for innovative drug companies reached USD 45.5 billion in the first five months of the year, nearing the total for the previous year [6]. - The regulatory environment is supportive of innovative drug development, with new measures introduced to enhance the quality of innovation in the pharmaceutical sector [6]. Strategic Moves - WuXi AppTec is optimizing its CGT (cell and gene therapy) business by divesting certain assets to mitigate potential risks associated with regulatory changes [7]. - The global cell and gene therapy market is projected to grow significantly, indicating a favorable environment for WuXi AppTec's strategic focus in this area [7]. Market Dynamics - The CRO sector is expected to benefit from a rebound in investment and financing within the healthcare sector, with a notable increase in financing events and amounts [8]. - However, the industry faces intense competition, with the number of qualified clinical trial institutions in China increasing significantly, leading to price pressures [8]. - Despite challenges, the demand for medical outsourcing services is recovering, and companies with global service capabilities are well-positioned to capitalize on this trend [8].

Core Viewpoint - Haier Biomedical's Q1 revenue reached 688.99 million, a year-on-year increase of 0.30%, indicating a return to normal business development despite challenges in the market [2][3]. Revenue Summary - Total revenue for Q1 2025 was 688.99 million, compared to 686.91 million in the same period last year, reflecting a growth of 0.30% [3]. - Net profit attributable to shareholders decreased by 19.88% to 110.26 million, while the net profit after deducting non-recurring gains and losses fell by 25.38% to 99.17 million [3]. - Operating cash flow decreased significantly by 51.79% to 37.22 million [3]. - Basic and diluted earnings per share both dropped by 20.45% to 0.35 yuan [3]. Business Segment Performance - The Life Sciences segment generated revenue of 354 million, up 1.06% year-on-year and 53.28% quarter-on-quarter [3]. - The Medical Innovation segment reported revenue of 332 million, down 0.61% year-on-year but up 24.26% quarter-on-quarter [3]. Growth Drivers 1. Non-storage new industries maintained high growth, with revenue share at 44%, increasing by 13.92% year-on-year and 27.35% quarter-on-quarter, driven by growth in plasma consumables, medication automation, laboratory consumables, and instruments [4]. 2. Domestic scenario solutions continued to expand, with domestic market revenue at 482 million, down 3.35% year-on-year but up 54.98% quarter-on-quarter, enhancing brand strength and competitiveness [4]. 3. The overseas market showed signs of recovery with revenue of 204 million, a year-on-year increase of 9.88% and a quarter-on-quarter increase of 8.99%, reversing the decline seen in 2024 [4]. Future Industry Layout - Haier Biomedical is actively expanding into future industries such as CGT and blood management, launching an intelligent fully automated cell culture workstation and enhancing blood supply efficiency through AI and smart blood management systems [5].